Fancy a Canna Coke? The CBD Beverage Market

Coca Cola is the most recognizable brand in the world. Children see Coke as the elixir of life. Parents, on the other hand, see Coke as the drink that turns their little angels into monsters.

Though Coke's effect on children is no mystery. The hyperactivity caused by Coke consumption is the well-known effect of the high amounts of sugar in each can. Though in some ways, sugar is a step up from Coke's previous drug of choice. As many will know, the primary ingredient of Coca Cola was once cocaine.

Many will think that having cocaine in a soft drink is absurd, while others will wish it was still the case.

Now, a new substance is in the running to be a central ingredient within Coca Cola: CBD.

Last September Coca Cola was in conversation with Aurora Cannabis (TSE: ACB) over potentially incorporating cannabidiol into their range of drinks.

While the talks sparked up a lot of interest, we won't be seeing a green "canna coke" anytime soon. Since the murmurs of CBD Coke have emerged, the company's CEO James Quincey has dispelled any CBD talk, saying that there "aren't any plans" currently for Coke to enter the CBD market.

Though having an alleged "super-food" in their drinks might not be such a bad idea, as Coke's sales aren't doing too well. Due to an increased focus on wellness and health, Coca Cola and Pepsi sales are going down, while bottled water sales are going up.

According to Business Insider, in 2017 carbonated-soft-drink sales declined 1.3 percent, while bottled water grew 6.2 percent.

In fact, in order to combat this decline in sales, Coke has had to make a shift towards sparkling water.

"I think that the U.S. consumer, from a transactions point of view, is increasing its transactions of sparkling drinks."

– Coca Cola chairman Muhtar Kent

People are becoming more conscious of what goes into their bodies, leading beverage companies to become more conscious of what they put in their drinks. Now, companies both inside and out of the wellness sphere will have to consider ways to keep their consumers happy, with many turning to CBD as the answer.

Chances are you've heard about Cannabidiol, also known as CBD. In fact, you've probably heard a lot about it. But let's take a closer look at why everyone is talking about this compound. For decades, the cannabinoid compound THC has taken all the glory. Studies frequently focused on THC, or tetrahydrocannabinol, as it is responsible […]

Could CBD oil be the next household painkiller? How about the next superfood? Why can't it be both? Well the correct answer is, it can; as a nutraceutical. The nutraceutical market is set to grow to $578.23 billion USD by 2025 according to a new report by Grand View Research, Inc. But what exactly is […]

This month we've talked a lot about the compound CBD. We talked about CBD in general, the industry, CBD within the wellness community and CBD as a performance enhancer. Though, it's been pretty hard not to. The compound – cannabidiol – has been accepted far and wide by an array of industries. And this isn't […]

Spin The Bottle: The CBD Beverage Market

The Global beverage industry is set to reach an estimated $1.9 trillion by 2021 at a 3 percent growth rate during between 2016 and 2021. Though within the industry there is an emergent trend; that of a more natural drink.

A subset of the beverage industry is the organic beverage industry, which is projected to grow at 8.3 percent over the next three years – close to triple that of the global beverage industry itself.

In Germany in 2017, 25 percent of all new food and beverages on the market were organic, with a majority of consumers mentioning they wished there were more organic products.

Now, thanks to the broad and growing range of health benefits achieved by CBD consumption, consumers are getting a thirst for the cannabinoid compound in their drinks. While the legality of CBD-infused drinks is murky, Consumer Reports state that there are already hundreds of CBD-infused products on the market in the US.

Zenith Global predicts that cannabis infused drinks will grow to over $1.4 billion by 2024 – fifteen times the amount of Cannabis drink sales in 2018. Juice, coffee, tea, alcohol, soft drinks and water; no matter what your drink of choice is, chances are there's a CBD version on the market.

And because of the buzz around CBD beverages, you can bet a lot of the biggest players in the beverage industry have their eyes on adding the compound to their own drinks.

Around the same time Coke was in conversation with Aurora about releasing a CBD range, Corona and Modelo raised their stakes in Canopy Growth by $4 billion bringing them up to 38 percent ownership. Heineken also released their Hi-Fi Hops last year, acannabis beverage that comes in a THC version and a hybrid of THC and CBD version.

Causing A Stir: Who Are the Big Players?

As giants such as Corona and Coke dip their toes in the CBD market, others are diving in head-first to jump aboard the CBD craze.

One of the biggest players in the CBD beverage market is Alkaline Water Company (NASDAQ: WTER).

Sold in over 47,500 stores including Walmart, the Alkaline Water Company has a market share of $99.465 million and has just announced the launch for it's hemp-based CBD-infused 'A88 Infused Beverage Division.'

Partnering with the International flavour house Ungerer Company, Alkaline is embedding itself deeply into the CBD beverage market.

"Ungerer has taken their skills to another level and solved the impossible; they have created a great tasting flavoring to use in our hemp-extract water. This product is low in calories, high in all-natural flavors, and does not have a 'hemp' after-taste."

– Mr. Wright, President and CEO of The Alkaline Water Company.

Accompanying Alkaline in the CBD-infused water game is Caliva, an established retailer of Cannabis products across California.

Caliva has recently acquired Zola—a natural beverage company which distributes to over 7000 stores—in order to make it's way into the CBD beverage space.

From sparkling water, teas, cold brew coffee and sports drinks, Caliva and Zola have every base covered. Caliva plans to distribute it's hemp-derived CBD drinks this September with a quick roll out thanks to Zola's vast network of distributors according to Zola founder Chris Cuvelier.

"Caliva is proud to do so with Zola as our partner. Zola has a very successful track record in creating delicious, healthy and functional beverages and we look forward to extending this line into hemp-CBD based beverages and offering the range to Zola's impressive network of over 7,000 retailers,"

– Dennis O'Malley, CEO of Caliva

Another big player in the CBD beverage space is Green Roads, which occupies 6 percent of the market.

Specializing in CBD-infused tea, coffee and decaf coffee beans, Green Roads has their finger on a strong pulse.

According to a new report published by Allied Market Research, the global coffee beans market size was valued at $10.4 billion in 2017, and is predicted to reach $15 billion by 2024.

Fact or Just Fizz: Where's CBD Headed?

The research behind CBD beverages is scant to say the least. While much of the anecdotal evidence is positive, it's not all sunshine and rainbows for CBD beverages.

On one hand, some are calling CBD the next big super-food, capable of solving many of life's ailments. This follows on from benefits found through consumption of tinctures, oils gummies and other CBD products, which are said to reduce anxiety, give users better sleep and decrease depression.

However, whether or not these same benefits are experienced through CBD teas, coffees and juices is another question. Some anecdotes from consistent consumers of CBD coffee report feeling more "anxious and sluggy" after drinking the canna-coffee regularly.

While anxiety is a common symptom of regular coffee use, it makes people wonder whether or not CBD will have much benefit when combined with stimulating drinks.

"There's a lot of interest and excitement, for good reason, but I think people are pushing it too hard, too fast and are overgeneralizing things,"

– Ryan Vandrey, Professor at Johns Hopkins

Despite these anecdotal claims, the skepticism isn't as loud as the excitement surrounding CBD, and it hasn't had much success slowing down the bulldozer effect of CBD in the global market.

The growth of the industry shows that people want to integrate CBD into their lives whenever and wherever possible alongside the growing trend towards wellness.

While the verdict is still out on the benefits of CBD drinks, it's certain that if more positive research pours forth, so too will the beverages.

Get the latest scoop on cannabis education right in your inbox

Get the latest scoop on cannabis education right in your inbox

The Green Fund is Asia Pacific's preeminent media house, positioned at the forefront of the global cannabis industry. Committed to driving the industry forward, we spotlight the sector from all angles, explore the companies and the players making headlines, and cover some of the biggest cannabis companies in the world.

Any financial product advice provided in this website is general in nature. Content on this website does not take into account the objectives, financial situation or needs of any person, or purport to be comprehensive or constitute investment advice and should not be relied upon as such. You should consult a professional adviser to help you form your own opinion of the information and on whether the information is suitable for your individual objectives and needs as an investor. Where necessary, you should obtain a Product Disclosure Statement relating to the product and consider it before making any decision about whether to acquire the product. Read More

The content of this website does not constitute an offer by any representative of The Green Fund to buy or sell any financial products or services. Accordingly, reliance should not be placed solely on the content of this website, including any reports or recommendations, as the basis for making an investment, financial or other decision.

Recipients should not act on any report or recommendation issued by The Green Fund without first consulting a professional advisor in order to ascertain whether the recommendation (if any) is appropriate, having regard to their investment objectives, financial situation and particular needs. Any opinions expressed are subject to change without notice and may not be updated by The Green Fund.

The Green Fund believes the information contained in this website is correct. All information, opinions, conclusions, estimates, reports or recommendations provided are included with due care to its accuracy; however, no representation or warranty is made as to their accuracy, completeness, or reliability.

The Green Fund disclaims all liability and responsibility for any direct or indirect loss, or damage, which may be incurred by any recipient through any information, omission, error, or inaccuracy contained within any report or recommendation.

The views expressed in any report or recommendation are those of the analyst writing the report and no part of the compensation received by the analyst is directly related to the inclusion of specific recommendations or opinions.

The Green Fund and / or its associates may hold interests in the entities mentioned in any posted report or recommendation.

The Green Fund, or its representatives, may have relationships with the companies mentioned in posted reports - for example, acting as corporate advisor, dealer, broker, or holder of principal positions. The Green Fund and / or its representatives may also transact in those securities mentioned in the report, in a manner not consistent with recommendations made in the report.

Any recommendations or opinions stated in a report are done so based on assumptions made by The Green Fund.

The information provided in any report and on which it is based may include projections and / or estimates which constitute forward-looking statements. These expressed beliefs of future performance, events, results, or returns may not eventuate and as such no guarantee of these future scenarios is given or implied by The Green Fund. Any forward looking statements are subject to uncertainties and risks that may mean those forecasts made by The Green Fund are materially different to actual events. Show Less